As Congress and administration officials scramble to come up with a plan to salvage the ailing financial world, lobbyists for banks and other financial services firms are gearing up for an unprecedented week of 24/7 activity. Already, lobbyists, not surprisingly, have found proposals to pick apart.
For starters, the industry has targeted an effort by Senate Banking, Housing and Urban Affairs Chairman Chris Dodd (D-Conn.) to revamp bankruptcy law to allow judges to change the terms of borrowers mortgages.
Supporters say the idea could help some homeowners who would otherwise go into foreclosure to stay put. But banks and lenders argue it would harm the economy, the very thing lawmakers are trying to fix.
Bankruptcy is such a divisive issue in this debate, and resurrecting bankruptcy right now is completely unproductive, said Francis Creighton, vice president and chief lobbyist with the Mortgage Bankers Association. This bill we are
talking about is not a mortgage bill, not a housing bill. Its supposed to address the threats to the entire economy.
He added that the bankruptcy provision could end up stalling this very necessary and needed bill.
Scott Talbott, senior vice president of government affairs with the Financial Services Roundtable, takes the same view when it comes to the bankruptcy provision. His association is also concerned about measures that would put limits on executives compensation as well as a proposal that could allow the U.S. government to exercise stock options in bailed-out firms.
We will work with all interested parties to voice our opposition, Talbott said. We support the bill and support getting the bill done quickly. We support giving Treasury broad authority to allow it to send assistance where its needed. But we have significant concerns with the limits on executive comp as well as inclusion of the bankruptcy provision.
Not all lobbyists believe the Dodd bankruptcy provision is the real deal. One industry advocate, who would speak only on background, said he believes it was floated for purely political purposes. No ones taking Dodd seriously, this lobbyist said, adding that this week promises an insane schedule for lobbyists in the sector.
Everybodys chasing down rumors, the lobbyist said. Were worried about everything. ... Its a one-week marathon, not a sprint.
Added an in-house lobbyist with a financial services firm: Never in all my life have I had to work like this. Things are moving so fast. We are getting documents at 4
oclock in the morning.
K Street Moves. Speaking of the financial services world, just in time for that marathon week of lobbying, the Securities Industry and Financial Markets Association has added a new legislative affairs managing director. Cory Strupp, the former deputy director and general counsel at the American Bankers Association, will report to Michael Paese, SIFMAs new executive vice president of global advocacy.
From 1984 to 2003, Strupp worked in-house for JP Morgan.
Holtzman Vogel has tapped Tom Josefiak, a former chief counsel at the Republican National Committee and Federal Election Commission chairman, to join the firm. Josefiak will be a partner at Holtzman Vogel, which specializes in lobbying and campaign finance compliance. Most recently Josefiak served as of counsel to the 2008 Republican National Convention in St. Paul, Minn.
Roll Call has launched a new feature, Hill Navigator, to advise congressional staffers and would-be staffers on how to manage workplace issues on Capitol Hill. Please send us your questions anything from office etiquette, to handling awkward moments, to what happens when the work life gets too personal. Submissions will be treated anonymously.